GRAP 2413: Understanding Advertising Media MAIN ASSIGNMENT Stage 2: Media Planning Phan Ngoc Anh Thu S3160793

8 January 2010 Lecturer: Supanida Chantarin 1

Table of Content I. Communication Objectives ....................................................... ............................3 II. Media Objectives ........................................................... ........................................3 III. Target Market and Geographical Co verage .........................................................3 IV. Media Stra tegies.......................................................................... ...........................4 1. 2. a) b) c) 3. a) b) c) V. Promotional mix tools ............................................................................... .........4 Selected Mediums .................................................... ..........................................5 Advertising ........................ .............................................................................5 S ales Promotion.................................................................. ............................7 Public Relations ................................. ............................................................7 Selected Media Veh icles .......................................................................... ...........8 Advertising ....................................................... ..............................................8 Sales Promotion................. ........................................................................... 15 P ublic Relation ................................................................. ............................ 15 Budget ......................................................................... .........................................16 VI. Scheduling.................................................................. ..........................................17 VII. Flowchart .................... ................................................................................ ........17 VIII. Reference List: ............................................... ....................................................18 IX. Appendix ............ ................................................................................ ..................19 2

I. Communication Objectives Ponds Age Miracle is the best solution for anti-aging for women due to its high e ffectiveness. Ponds Age Miracle was already introduced in Vietnamese market but t he strategy was not really successful. In this time, the product will be re-laun ched with a new image. The media objectives will mainly focus on raising the awa reness of consumers and creating brand recall for the ones who already used the product before. Specifically, through the broadcast media, Ponds Age Miracle expe cts to gain awareness of 80% of the target market and 60% of the target consumer s can recall the product after exposing to the advertising media over one year p eriod. These figures are quite high because Ponds Age Miracle is not a completely new launched product; there are some consumers who already knew about its exist ence. Moreover, the brand Ponds has built a good prestige and reputation in consu mers mind in Vietnamese market. Newspapers, magazines and television are determin ed as major advertising media due to theirs high coverage II. Media Objectives Ponds Age Miracle sets the objectives for TV ads to reach 50% of the target audie nce at least three times over the three-month period and the duplicated reach co uld probably happen because the ad will be placed on more than one TV show. This objective is not high because the media strategy will not only focus on TV but also use other mediums. Moreover, due to the high cost, the usage of TVC will be limited. III. Target Market and Geographical Coverage Ponds Age Miracle targets women who are from 35 to 60 years old; they also have a n average income and are classified in upper middle class and upper class (Demogr aphics Classifications, n.d). Their occupations could be housewife, white collar worker, clerk, teacher or any one else who wants to prevent the signs of aging a nd has a beautiful, young and smooth skin despite their real age. Most of these targeted women live in urban areas. Therefore, this advertising campaign will fo cus operating at Hanoi (HN) and Ho Chi Minh City (HCMC), which are the two bigge st cities of Vietnam. The figures below demonstrate that the average monthly hou sehold income and contribution to total Vietnam GDP of these cities residents are quite high, which can meet the criteria of target audience. 3

Source: HCMC vs. Hanoi: Understanding Consumer Differences (2009) IV. Media Strategies 1. Promotional mix tools To achieve the media objectives and foster the expansion of Ponds Age Miracle in Vietnamese market, the campaign will apply some promotional mix tools comprising advertising, sales promotion and public relations. With the aim to gain awarene ss of target consumers, advertising is a very effective way of reaching a wide a udience and the repetition of advertisements can help to build brand recall and trust of consumers towards the products image. Besides, sales promotion is a good tool to generate quick increase in sales in a short term. Sometimes, the consum ers could not decide what they really want; thus, when Ponds Age Miracle offers s ome kinds of sales promotion, they can probably encourage consumers want to take trial. Finally, public relations (PR) are considered as key strategy of this ca mpaign due to its strong impacts. The activities about PR are expected to catch huge attention of target consumers and spread out more detail about the goodness of Ponds Age Miracle to them. Although public relation might be costly but the 4

positive effects it can gain are worth doing. 2. Selected Mediums a) Advertising The advertising will mainly focus on the mediums of traditional media including TV, magazine, in-store and outdoor advertising and new media like websites. The campaigns period is in one year so the advertising will be spread alternately all over the time, not combining all of those mediums at the same time. Some medium s have high popularity such as TV, magazine and website would be used continuous ly throughout the period. Because the objective of Ponds Age Miracle is to reach 50% of target audience at least three times in one quarter; thus, these mediums are necessary to raise the attention and knowledge of consumers about the produc t. However, the amount and size of advertisements will be variable at different times, depending on the other activities of the campaign. For example, the numbe r of ads would be increased to inform audience when Ponds Age Miracle has special events or sales promotion. These are the benefits of using TV, magazines and we bsites. - TV: reaching large numbers of audience on a national level and we can choose the specific time that most target consumers will watch the TV or specifi c programs they often prefer. Moreover, TV offers the ability to convey the mess age with sight, sound and motion which might convince the audiences better. The chart below showed the percentage of media access or device ownership and TV hel d the highest numbers in all three years from 2006 to 2008. Source: Traditional media landscape (n.d) 5

TV is dominant in ads spend by type of media Source: Traditional media landscape (n.d) - Magazine: giving more chances to approach the target consumers as we can selec t the magazines that have appropriate segmentation and familiar target with Ponds Age Miracle such as women, beauty and fashion. Moreover, the audience may read magazines more than one time so the frequency could be increased. - Website: the significant rise of Internet users in Vietnam today has made website become an effective tool for advertising. The most popular websites in Vietnam like VnExpr ess, 24h.com.vn and Ngoisao.net are updating about news, fashion trend or entert ainment. They could attract million viewers per day including the target market. Moreover, advertising on website is cheap, fast and easy to edit or replace the content. TV and magazine gained high percentage of media reach compared with ot her mediums meanwhile the number of Internet increased quickly over three years. Source: Traditional media landscape (n.d) 6

Besides, the in-store and outdoor advertising will also be used variably, depend ing on the different vehicles. Specifically, the in-store advertising will be in -store TV, placed at the big supermarkets in Hanoi and HCMC to show Ponds Age Mir acle ads and some video clips about how to massage the skin or wash skin in a ri ght way; point of purchase (POP) display like hanging posters or banners. The co nsumers often tend to make buying decisions if the display of products booth coul d catch their attention and make them have strong impression about the product. Thus, the in-door advertising is very effective in encouraging peoples consumptio n. Outdoor advertising will be billboards on the crowded streets and crossroads in the cities. It is a really good way to reach largely the target consumers bec ause they frequently pass by these streets to go to work or city centers. Moreov er, this vehicle also offers informative, relevant content which can raise consu mers interest. b) Sales Promotion Sales promotion is one of the important parts o f media strategy. Its purposes are to promote an increase in sales, usage and en courage consumers to take trial. The activities of sales promotion will be execu ted at a different and specific moment of time for Ponds Age Miracle, comprising premium (giving small, free gift for consumers); loyalty program (accumulating p oint of each purchase to get a VIP card and discount) and lucky draw for consume rs with many fascinating and valuable awards. - Premium: every one loves free st uffs. So, giving free gift for consumers can generate great attention of consume rs. Maybe they have not had a decision to buy Ponds Age Miracle yet but in order to get the free gift, they might buy the product. - Loyalty program: this activi ty helps Ponds Age Miracle to build brand loyalty and encourage re-purchase of co nsumers. With the good benefits of VIP member card offer, they make the consumer s want to buy many times to qualify the criteria of being a VIP member. c) Publi c Relations There will be a big event - Ponds Age Miracle Day, which will be take n place at Quan Khu 7 stadium in HCMC and Quan Ngua stadium in Hanoi. All the co nsumers are welcomed to join. The event would be a chance for women to discuss a bout skin care, meet the experts in beauty industry and ask them queries about a nti-aging methods. 7

Moreover, there will be professional staff to give consultant individually for e ach consumer. Moreover, in this event, target consumers can also experience the professional and thoughtful customer services. They know that customers are the top priority of Ponds Age Miracle. Using Ponds Age Miracle, customers will not onl y satisfy with the product but also the services it bring to. Besides, there wil l be a lucky draw for every attendant to attract them to stay till the end of th e event. Every activity in the event is free so it can gain lots of attention. T hus, the event could be seen as a good medium for Ponds Age Miracle to bring the product closer to its target audience. 3. Selected Media Vehicles a) Advertising TV ads: As stated above, TV is one of the most effective advertising mediums due to its high coverage and popularity. But the cost is really expensive so Ponds Age Mirac le just focuses advertising on two major TV channels: HTV (Ho Chi Minh TV) and V TV (Vietnam TV). These channels are also most watched and have very high rates o f viewers in the target cities: HCMC and Hanoi. Source: Voting of which Vietnamese channel is the most favorite on Dienanh.net ( 2009) Specifically, the 30-second ad of Ponds Age Miracle will be broadcast on these ch annels of HTV and VTV including HTV7, HTV9 and VTV3. As the target audiences are women above 35 years old and have occupations like housewife, white collar, etc , we will choose the appropriate times and programs that most of them will stay at home and watch TV. The time interval should be between 18:00 and 23:00 becaus e at those times, women already arrive home from work, have dinner with their fa mily and relax. So, they could 8

have more free time and pay more attention to the programs rather than the morni ng, when they are hurried in going to work or taking their children to school. B esides, the selected programs should be about health, beauty, fashion or movie, music, talk shows. The table below is the detailed plan for advertising on TV. Program Channe l Date Airtime Quantity & Quarter (Q) Unit cost (VND) 40,000,000 L Phi p (As a woman) HTV7 Sun 19:30-19:45 - Q1: 2 times - Q2&Q3: 1 time - Q4: 1 time Thi Trang &Cuc Sng (Fashion & Life) HTV7 Sun 12:05-12:30 - Q1: 2 times - Q2&Q3: 1 time - Q4: 1 time 25,000,000 Phim Tryn Vit Nam (Vietnamese Movie) HTV9 Mon- 18:00-18:45 Sun - Q1: 2 times - Q2&Q3: 1 time - Q4: 1 time 30,000,000 Gii Tr 1 (Entertainment 1) VTV3 19:55-21:00 - Q1: 2 times - Q2&Q3: 1 time - Q4: 1 time 45,000,000 Tnh Yu Ca Ti (My Love)

VTV3 22:10-23:00 - Q1: 2 times - Q2&Q3: 1 time - Q4: 1 time 20,000,000 (Please see Appendix 1 for the full price list) Magazine: The selected magazines will have the same target audience with Ponds Age Miracle, who mostly concern about shopping, fashion and beauty. According to the researc h Vietnam FIPP World Magazine Trends (2007), The Gioi Phu Nu (Womens World), Cam Na ng Mua Sam (Shopping Handbook), Tiep Thi & Gia Dinh (Marketing & Family) are the magazines which have really high readership in Vietnam in 2007. 9

Source: Vietnam FIPP World Magazine Trends (2007) To save costs, the print ad is just shown in half page of these magazines. Like TVC, throughout one year, magazine advertising will be divided into three main p eriods including launch time (quarter 1), maintain time (quarter 2 and quarter 3 ) and event time (quarter 4). The table below is the detailed plan for advertisi ng on magazines. Magazine Title Size Day of Publication 10th , 25th monthly 5th, 15th, 25th monthly 1st, 10th, 20th Quantity & Quarter (Q) - Q1: 1 time - Q2&Q3: 1 time - Q4: 2 times - Q1: 3 times - Q2&Q3: 1 time - Q4: 2 times - Q1: 1 time Unit Cost (VND) 28,800,000 The Gioi Phu Nu (Womens World) half page horizontal, color Cam Nang Mua Sam (Shopping Handbook) Thoi Trang Tre half page horizontal, color half page 14,000,000 25,000,000 10

(Young Fashion) horizontal, color monthly - Q4: 1 time Tiep Thi & Gia Dinh (Marketing & Family) half page horizontal, color Monday weekly - Q1: 1 time - Q2&Q3: 1 time - Q4: 2 times 39,250,000 Please see Appendix 2 for the full price list.

Website The selected websites include VnExpress (vnexpress.net), Dan Tri (dantri.com.vn) and 24h.com.vn, which are the most popular websites in Vietnam today (Social med ia landscape, n.d). 11

Source: Social media landscape (n.d) The position and size of the banner would vary on different websites but be plac ed on the specific columns that mostly accessed by Ponds Age Miracles target audie nce such as fashion and beauty. The table below shows the detailed plan for adve rtising on websites. Website Position Dimension (pixels) VnExpress.net Basic log o 180x150 Quantity & Quarter (Q) - Q1: 2 times - Q2&Q3: 2 times - Q4: 2 times Da ntri.com.vn Great banner 770x120 - Q1: 2 times - Q2&Q3: 2 times - Q4: 2 times 24 h.com.vn Top banner 420x120 - Q1: 3 times - Q2&Q3: 2 times - Q4: 3 times 3,000,0 00 5,000,000 Unit Cost (VND/month) 6,000,000 Please see Appendix 3 for the full price list. 12

In-store and Outdoor Advertising - In-store TV will be placed at the big supermarkets in Hanoi and HCMC as the ta rget consumers frequently go there for grocery, food and household goods. City S upermarket District Duration & Quarter (Q) HCMC CoopMart Phu My Hung 7 - Q1: 2 m onths - Q4: 1 month HCMC CoopMart Cong Quynh 1 - Q1: 2 months - Q4: 1 month HCMC Maximark 3/2 10 - Q1: 2 months - Q4: 2 month HCMC Maximark Cong Hoa Tan Binh Q1: 1 month - Q4: 1 month HCMC Lotte Mart 7 - Q1: 2 months - Q4: 2 months Hanoi Fivimart Dai La Dai La - Q1: 2 months - Q4: 1 month Hanoi Metro Tu Liem - Q1: 2 months - Q4: 2 months Hanoi BigC Tran Duy Hung - Q1: 2 months - Q4: 1 month - Point of Purchase: hanging posters and small banners at Ponds Age Miracles booth at some big shopping centers including Diamond Plaza, Parkson Hung Vuong and CT Plaza in HCMC and Trang Tien Plaza in Hanoi. These are the familiar places, whi ch firstly pop out from many womens heads when thinking of the places for buying cosmetics, clothes and shoes. Shopping Centers Diamond Plaza District 1 Duration & Quarter (Q) - Q1: 3 months - Q2&Q3: 2 months - Q4: 3 months Parkson Hung Vuon g 5 - Q1: 3 months - Q2&Q3: 2 months 13

- Q4: 3 months Parkson CT Plaza Tan Binh - Q1: 3 months - Q2&Q3: 2 months - Q4: 3 months Trang Tien Plaza Hoan Kiem - Q1: 3 months - Q2&Q3: 2 months - Q4: 3 mon ths - Billboards: a 20 m billboard will be hung at the crowded streets in the distric ts near city center such as Cach Mang Thang 8, Nguyen Thi Minh Khai, Nam Ki Khoi Nghia and Hai Ba Trung. A huge of amount people will frequently pass by these s treets because they lead to the city center, where most of the offices and enter tainment places are located. City HCMC Street Cach Mang Thang 8 Duration & Quart er (Q) - Q1: 3 months - Q4: 3 months HCMC Nguyen Thi Minh Khai - Q1: 3 months Q4: 3 months HCMC Hai Ba Trung - Q1: 3 months - Q4: 3 months HCMC Nam Ki Khoi Ng hia - Q1: 3 months - Q4: 3 months Hanoi Nguyen Trai - Q1: 3 months - Q4: 3 month s Hanoi Nguyen Chi Thanh - Q1: 3 months - Q4: 3 months Hanoi Ly Thuong Kiet - Q1 : 3 months - Q4: 3 months 14

b) Sales Promotion - Premium: in the launching time (from January to March, 2010) in both HCMC and Hanoi, every consumer buys one Ponds Age Miracle will get a small pink wallet (va lued 20,000 VND/each), which has logo of Ponds on it. The convenience of free gif t can encourage target consumers to buy the product because majority of women us es wallet to keep their money and small personal stuffs like lipstick, keys and cards. - Loyalty program: this program will start from March running to the end of the year. When a consumer purchases the products of Ponds Age Miracle kit over 1,000,000 VND, they can receive 1,000 points. When they accumulate 10,000 point s, they can get a VIP member card of Ponds Age Miracle. With this card, they can receive discount from 5% to 10% off of the services including heath care: skin m assage, spa, gym and beauty salon; entertainment: restaurant, caf and karaoke; cl othing and footwear. Especially, the VIP member can receive 10% off every produc t of Ponds as well to encourage brand loyalty. c) Public Relation The event Ponds Age Miracle Day will take place on Sunday, 26 December 2010 from 10:00 am to 3:00pm at Quan Khu 7 stadium in HCMC and Quan Ngua stadium in Hanoi. It is a free-entry event so everyone is invited to join. This is the list of ac tivities that the attendant can join. Activity Facial Treatment Description - Sk in massage, Advanced anti-aging facial, Facial mask. Make up - Normal or special occasion make-up, Tinting eyebrows and eyelashes, Massage - Soft and deep tissu e massage, Hot rock massage. Skin consultant by professional teams - Skin analys is, Question & answer about skin care Waxing Ponds Age Miracles trial - Eyebrow, l ip, chin, full face. - Receiving sample of Ponds Age Miracle and instructions for use. 15

Especially, every consumer, who buys a product of Ponds Age Miracle, can receive a number. This number will be used for the lucky draw at the end of event to kee p people staying for the whole event. In fact, many consumers are really interes ted in winning a prize or getting the valuable awards. They do not only like fre e stuff but also because they want to try their luck. Paying a little amount of money for the product to get a hundredfold worth gift is a desire of many people ; as the awards are expensive items including 1st Prize: one trip to Korea for t wo people, 2nd Prize: one 32 Samsung LCD TV, and 3rd Prize: one gold jewelry set comprising ring, earrings and necklace. V. Budget The target audiences of Ponds Age Miracle are women living in HCMC and Hanoi, whi ch have the total population 6,427,000 people (Average female population by provi nce, 2008). There is about 69.4% of population from 25 to 54 years old (CIA - The World Factbook: Vietnam, n.d); so the assumed amount of target audiences might be 4,113,000 people. According to the objectives: - 80% of people have awareness about the product = 80% x 4,113,000= 3,290,000 - 75% of people might buy the pr oduct = 75% x 3,290,000= 2,467,500 Meanwhile, one product of Ponds Age Miracle ki t has the average price between about 500,000 VND to 1,000,000 VND. Thus, the to tal income of Ponds Age Miracle might be around 1,233,750,000 VND to 2,467,500,00 0 VND. A consumer can re-purchase the products over one time so the estimated bu dget for Ponds Age Miracles media plan in one year would be 3,000,000,000 VND. The chart below is the budget allocation. Budget Allocation 15% 35% TVC Magazine Website 13% In-store & Outdoor ads Sales Promotion Event 6% 24% 7% 16

VI. Scheduling Continuity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The scheduling strategy applied in this media plan is continuity because in 2010 , Ponds Age Miracle will re-launch the product in HCMC and Hanois market. Moreover , the product can be sold in any time of the year. So, it needs continuous adver tising activities on various mediums to maintain and increase target audiences aw areness. However, the advertisements are just showed in some months of the year, not all the time. Specifically, the media plan is divided into three periods: l aunching time (quarter 1), maintaining time (quarter 2 and 3) and event time (qu arter 4). The amount of advertising will be fostered in launching time as it nee ds to gain attention of target consumers, decreased in the middle of the year to maintain the brand image and increased again in the quarter 4 to promote for th e event Ponds Age Miracle Day. VII. Flowchart Please see in the attached document 17

VIII. Reference List: Average female population by province, 2008, General Statistics Office of Vietnam, viewed 2 January 2010, http://www.gso.gov.vn/default_en.aspx?tabid=467&idmid=3&ItemID=8649 CIA - The Wo rld Factbook: Vietnam, n.d, Central Intelligence Agency, viewed 1 January 2010, https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html Demograp hics Classifications, n.d, Businessballs, viewed 16 November 2009, http://www.bus inessballs.com/demographicsclassifications.htm HCMC vs. Hanoi: Understanding Cons umer Differences, 2009, [IMG], The Neilson Company, viewed 2 January 2010, http:/ /74.125.95.132/search?q=cache:_sPracEa5lwJ:www.bsa.org.vn/UserFiles/news/269 5_N ielsenVietnam_HCMCvHanoiRegionalDifferences_june09VENGLISH_slide7edit.pd f+%E2%8 0%98HCMC+vs.+Hanoi:+Understanding+Consumer+Differences%E2%80%9 9&cd=2&hl=vi&ct=c lnk&gl=vn Social media landscape, n.d, [IMG], Digital Media Across Asia, viewed 3 January 2010, http://comm215.wetpaint.com/page/Social+Media+Landscape Traditional Media Landscape, n.d, [IMG], Digital Media Across Asia, viewed 1 January 2010, h ttp://comm215.wetpaint.com/page/Traditional+Media+Landscape Vietnam FIPP World Ma gazine Trends, 2007, viewed 2 January 2010, FIIP World Magazine, http://docs.goog le.com/viewer?a=v&q=cache:0LZ7VZcfmwcJ:www.fipp.com/User/Docu ments/Publications /1Vietnam.pdf+vietnam+fipp+world+magazine+trend&hl=vi&gl=vn&sig=AHIEtbRMFnX jrP4 rXf5CiCdbqFHZXKddJA Voting of which Vietnamese channel is the most favorite, 2009, [IMG], Dienanh.net Forum, viewed 1 January 2010, http://dienanh.net/forums/show thread.php?t=80867 18

IX. Appendix 19

Stage 2 Assessment Sheet: Assessment criteria and mark allocation Assignment stage 2 is worth 40 % of overall marks. Define media objective (4 mar ks) Demonstrate understanding of the subject matter Demonstrate logical and analytic al thinking Define media strategies (15 marks) Demonstrate understanding of the subject matter Demonstrate logical and analytic al thinking Creativity Budget (4 marks) Demonstrate understanding of the subject matter Demonstrate logical and analytic al thinking Scheduling (4 marks) Demonstrate understanding of the subject matter Demonstrate logical and analytic al thinking Media campaign flowchart (4 marks) Demonstrate understanding of the subject matter Demonstrate logical and analytic al thinking Presentation (3 marks) Well presented paper with appropriate format Clarity of writing and expression (3 marks) Referencing (3 marks) Cite your references correctly according to the Harvard referencing style. Total ________________________________________________________________________________ ___________________________________________ Comments ____________________________________________________________________ ___________ ____________________________________________________________ ___________________ ____________________________________________________ 20